In early trading yesterday, Wednesday, gold prices recorded an increase amid investors' anticipation for more data, especially the US jobs report, to anticipate the next steps of the Federal Reserve (the US central bank) regarding its monetary policy, but the rise in US bond yields limited the rise of the precious metal.
Kyle Rodda, a financial markets analyst at Capital.com, said that the biggest driver of gold prices over the past few days was the decline in expectations for lowering interest rates this year, and this will remain so during the next few days.
The minutes of the Federal Reserve's last meeting on December 12 and 13 showed that bank officials are increasingly convinced that inflation is subsiding, but they also indicated a high degree of uncertainty regarding expectations for a rate cut.
Lower interest rates reduce the opportunity cost of owning the non-yielding yellow metal.
The dollar index fell, but remained close to the three-week peak it reached in the previous session, while 10-year Treasury bond yields rose to 3.9330 percent.
Investors are now awaiting the weekly unemployment claims data scheduled for 1330 GMT and the non-farm payrolls report on Friday, seeking greater clarity on the scope available for the US central bank to reduce interest rates.
Change in prices
By 0434 GMT, gold in instant transactions rose 0.1 percent to $2043.72 per ounce, after recording its lowest levels since December 21 yesterday, Wednesday.
US gold futures increased 0.4 percent to $2,051.10 per ounce.
As for other precious metals, silver settled in spot transactions at $22.97 per ounce, while platinum fell 0.5 percent to $966.59, and palladium rose 0.1 percent to $1,066.93 per ounce.
